Which sections do not apply to transfers of a Checkers franchise to a member of the franchisee's Immediate Family?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Section 13.06 nor Section 13.02(h) or (j) shall apply to any transfer of the Franchise to any member of your Immediate Family or the Immediate Family of a then current Owner of Franchisee (if a business corporation, partnership, limited liability company or other entity).
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, certain sections regarding franchise transfers do not apply when transferring to an immediate family member. Specifically, Section 13.06 and Section 13.02(h) or (j) are waived when a franchise is transferred to a member of the franchisee's immediate family, or to the immediate family of a current owner of the franchisee. This applies whether the franchisee is an individual, partnership, corporation, limited liability company, or other entity.
This means that Checkers franchisees may have a streamlined process for transferring their franchise to a close family member. The specific details outlined in Sections 13.06, 13.02(h), and 13.02(j) would not need to be fulfilled in such a transfer. This could potentially reduce the complexity and costs associated with the transfer, making it easier to keep the franchise within the family.
However, it is important to note that other transfer requirements may still apply. A prospective Checkers franchisee should carefully review the full transfer provisions in Item 17 of the Franchise Agreement and consult with Checkers directly to understand all applicable requirements for transfers to immediate family members. Waiving certain sections does not necessarily mean a completely unrestricted transfer, and other conditions might still need to be met.